American Eagle Outfitters (NYSE:AEO) Receives Underperform Rating from Bank of America

Key Points

• American Eagle Outfitters has been given an "underperform" rating by Bank of America, with a price target of $10.00, indicating a potential downside of approximately 22.09% from its previous closing price.
• Despite recent ratings from various analysts, including upgrades to "hold," the consensus remains cautious, with a majority of analysts rating it as "Reduce" and setting a target price of $14.40.
• American Eagle's latest earnings report showed a net margin of 3.73% and revenue decline of 4.7% year-over-year, missing earnings expectations by $0.04 per share.

American Eagle Outfitters (NYSE:AEO - Get Free Report)'s stock had its "underperform" rating restated by research analysts at Bank of America in a research report issued to clients and investors on Monday, MarketBeat.com reports. They currently have a $10.00 target price on the apparel retailer's stock, down from their prior target price of $11.00. Bank of America's target price would indicate a potential downside of 24.10% from the company's current price.

A number of other equities analysts have also recently issued reports on AEO. Telsey Advisory Group raised their target price on shares of American Eagle Outfitters to $12.00 and gave the stock a "hold" rating in a report on Friday, May 30th. Citigroup restated a "neutral" rating on shares of American Eagle Outfitters in a research note on Friday, May 23rd. Barclays dropped their price target on shares of American Eagle Outfitters from $10.00 to $9.00 and set an "underweight" rating on the stock in a research note on Monday, May 12th. Cfra Research lowered shares of American Eagle Outfitters from a "moderate buy" rating to a "hold" rating in a research note on Friday, June 6th. Finally, JPMorgan Chase & Co. restated an "underweight" rating and issued a $9.00 price target on shares of American Eagle Outfitters in a research note on Monday, July 28th. One research analyst has rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Reduce" and a consensus price target of $14.40.

American Eagle Outfitters Stock Performance

NYSE AEO traded down $0.05 during trading hours on Monday, reaching $13.18. The company's stock had a trading volume of 10,177,431 shares, compared to its average volume of 16,034,216. The company has a current ratio of 1.38, a quick ratio of 0.56 and a debt-to-equity ratio of 0.07. The business has a 50-day simple moving average of $11.22 and a 200 day simple moving average of $11.43. American Eagle Outfitters has a 52 week low of $9.27 and a 52 week high of $22.63. The stock has a market cap of $2.28 billion, a PE ratio of 13.44 and a beta of 1.51.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last issued its earnings results on Thursday, May 29th. The apparel retailer reported ($0.29) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.25) by ($0.04). American Eagle Outfitters had a return on equity of 13.34% and a net margin of 3.73%.The business had revenue of $1.09 billion during the quarter, compared to the consensus estimate of $1.08 billion. During the same period in the prior year, the business earned $0.34 EPS. The business's revenue was down 4.7% on a year-over-year basis. Equities research analysts predict that American Eagle Outfitters will post 1.7 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Junto Capital Management LP acquired a new position in American Eagle Outfitters in the 1st quarter worth approximately $38,588,000. Millennium Management LLC boosted its stake in American Eagle Outfitters by 1,510.1% in the 4th quarter. Millennium Management LLC now owns 2,509,057 shares of the apparel retailer's stock worth $41,826,000 after purchasing an additional 2,353,225 shares during the period. Cooke & Bieler LP boosted its stake in American Eagle Outfitters by 29.9% in the 1st quarter. Cooke & Bieler LP now owns 7,791,193 shares of the apparel retailer's stock worth $90,534,000 after purchasing an additional 1,794,203 shares during the period. Vaughan Nelson Investment Management L.P. acquired a new position in American Eagle Outfitters in the 1st quarter worth approximately $18,927,000. Finally, Nuveen LLC acquired a new position in American Eagle Outfitters in the 1st quarter worth approximately $18,140,000. Institutional investors and hedge funds own 97.33% of the company's stock.

About American Eagle Outfitters

American Eagle Outfitters, Inc operates as a multi-brand specialty retailer in the United States and internationally. The company provides jeans, apparel and accessories, and personal care products for women and men under the American Eagle brand; and intimates, apparel, activewear, and swim collections under the Aerie and OFFLINE by Aerie brands.